Date: 10th Apr 2011

Semiconductor chips to cost more due to quake in Japan

According to market researcher IHS-iSuppli, IC supply disruptions related to the Japan earthquake and tsunami of March 11 will help increase the size of the global semiconductor chip market in 2011. IHS-iSuppli has raised its forecast for the 2011 chip market to $325.2 billion, compared the previous forecast of $320.1 billion.

IHS-iSuppli argues that shortages of components will result in higher prices that will more than make up for the shortfall of ICs thereby raising the value of the market. The company warns that if problems of raw wafer supply persist that could impact DRAM suppliers in particular in October causing DRAM prices to go up yet further.

The latest forecast is that semiconductor revenue will grow by 7.0 percent, up from a 5.8 percent figure previously put out by IHS-iSuppli. The company now sees 2011 quarterly revenues at $76.06 billion, $78.03 billion, $84.51 billion and $86.62 billion, sequentially.